Biomass pellet industry in Malaysia

Located in Southeast Asian, Malaysia has abundant natural resources, which contributes to the biomass industry development. With the release of national green science and technology policy, the tenth Malaysia plan, 2010 Economic Transformation Programme, and 2011 Renewable Energy Act, Malaysia is tapping the potential of biomass industry.

Malaysia’s wood pellets production is 168 million tons every year. Many local research institutes and universities have taken part in the R&D of biomass. But Malaysia haven’t make full use of its biomass resources. The biomass industry still remains great potential.

Although renewable energy is still at an initial stage, the government advocate renewable energy by establishing the Sustainable energy development Agency (SEDA). Meanwhile, the renewable energy power repurchase system ensures stable price, and the national power giant TENAGA has assigned renewable power purchase agreement. They can guarantee the economic benefits of renewable energy.

In Malaysia’s eleventh five-year plan, 15 billion ringgit will be invested to green project from 2016 to 2020. The Malaysia government has launched green technology funding plan (GTFS), to invest 3.5 billion ringgit to supply 2% annual interest rate or profit margin for green technology companies. Besides, it also provide 60% government guarantee for the green cost of financing amount.

Biomass resources in Malaysia

Biomass refers to the solar energy deposited in plants by photosynthesis. It includes crops, grass, woody plants, agriculture and forestry waste, etc.

Malaysia is major palm oil manufacturer in the world. The president of Malaysia Biomass Industries Confederation Liang Jianwen reviews that the large quantity of oil palm waste should be fully utilized, or they would cause damage to the environment.

According to the data from the confederation, Malaysia’s biomass demand is in growth owing to large oversea market. Malaysia should seize the opportunity to enlarge biomass business. But the lack of attention to the biomass industry cause the short supply of biomass in Malaysia.

After the establishment of Malaysia Biomass Industries Confederation, the members hold many lectures all over Malaysia to introduce biomass industry and encourage people to take part in the business.

Liang Jianwen believes that the owner of oil palm plantations and oil-pressing plant is the most suitable to engage in biomass industry, because they have ready-made biomass wastes. Even if they don't do biomass business, they have to deal with the large amount of biomass waste.

Biomass products has high added value

Liang Jianwen has worked as the technical consultant of Malaysia biomass industry sustainable production project. He said the biomass industry has matured overseas, but it is still in initial stage in Malaysia.

As statistics show, Malaysia can produce 100 million tons of biomass, with most of them made into fertilizers. But they can be used to make high value-added products. There are four applications of biomass:

Biomass can be used to develop useful chemicals, like glycol, ethanol, and lactic acid.

Biomass can be the raw material for making ecological products, such as pulp, paper, biomass composites, and bioplastics as sustainable alternative for fossil base materials.

Problems facing Malaysia biomass industry

Lack of policy to promote the collection, process, and application of biomass energy. The cooperation efficiency of local agencies and biomass companies need to improve.

Lack of incentive measures or fund support make biomass companies undertake high investment.

Lack of reliable and explicit data on the biomass market capacity and potential.

To tackle climate change and relive energy shortage, we should increase the use of renewable energy. Biomass industry plays an important role in the country’s development. To improve the commercialization of biomass energy, the country should promote the cooperation among companies, government, and institutions.

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